NEW YORK - Teen clothing retailer Aeropostale is preparing to file for bankruptcy protection this week and close more than 100 stores, said the Wall Street Journal.
Faced with mounting losses and falling sales, New York-based Aeropostale plans to seek chapter 11 protection in the next few days before May rent payments are due, said the Journal, quoting unidentified sources in a report on Monday (May 2).
The retailer will close more than 100 of its roughly 800 stores soon after filing and potentially more later, the Journal said.
The company plans to reorganize around its remaining stores, but the specific details of its restructuring plan remain unclear, the Journal added.
There are four Aeropostale stores in Singapore - in Bugis+, VivoCity, Ngee Ann City and Jurong Point - with the brand under the distributorship of the Jay Gee Melwani Group.
Several US mall-based specialty retailers have filed for bankruptcy in recent years as young consumers spurn branded clothing in favour fast-fashion retailers like Forever 21, Uniqlo, and H&M, said the Journal.
Last year, women's retailer Cache Inc., teen-focused Wet Seal and surfwear seller Quiksilver Inc filed for chapter 11 protection.
Aeropostale, which opened its first store in 1987 and enjoyed a market capitalization of nearly U$3 billion in 2010, posted losses in its last three fiscal years as sales plunged. Its market value now stands at about US$2.9 million, said the Journal.